opportunity cost
Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to asses whether the potted plants are a good idea. Study their chart: How many potted plants should they be able to produce on Day 3? 25 30 50 75
50
Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? CHECK ALL THAT APPLY. High school athletes stop shopping there. The inventory of sports socks goes unsold. Publicity for the store declines. Profits decline because dress shoes cost less than sneakers.
A. High school athletes stop shopping there. B. The inventory of sports socks goes unsold.
How does a production possibility chart assist in outlining opportunity cost? It compares profit potential of one product to another. It compares production cost of one product to another. It compares production numbers of one product to another. It compares consumer demand of one product to another.
It compares production numbers of one product to another.
On a production possibility curve, data points that fall outside of the curve represent an inefficient allocation of resources. a balanced allocation of resources. ideal production. a currently unattainable production.
a currently unattainable production.
Read the scenario. Samira is a freshman basketball player who hopes to go to college on a basketball scholarship. She is offered the chance to play on her school's varsity basketball team, which plays in tournaments during holiday breaks. Samira usually spends her breaks working at the local hardware store. After careful consideration, Samira decides to stay on the freshman basketball team and keep working over breaks. The fact that Samira may miss out on a scholarship opportunity by staying on the freshman team illustrates a cause. minor consequences. a tradeoff. unexpected risk.
a tradeoff.
Opportunity cost occurs because of a producer's need to limit resources. protect resources. allocate resources. spend resources.
allocate resources.
Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion. What is Ricardo's opportunity cost? losing extra time to spend with his friends being able to use the extra money for summer football camp losing the ability to spend any time with his friends receiving another promotion in six months
losing extra time to spend with his friends
Assessing opportunity cost involves making choices and dealing with consequences. choosing consequences over rewards. reviewing past decisions and changing them. minimizing profit and loss.
making choices and dealing with consequences
Demonstrating opportunity cost is done through production analysis. possibility. calculation. research.
possibility.
What is a graphical representation of the combination of goods and services that can be produced in a situation? production possibility curve production supply curve production opportunity curve
production possibility curve
Look at the equation framework. Which of the following lists the proper placement of terms, from left to right, to complete the equation? revenue, profit, production cost profit, revenue, production cost production cost, profit, revenue production cost, revenue, profit
profit, revenue, production cost
Producers can create their maximum combination of goods, as long as they address consumer desires. guarantee a profit. properly allocate resources. keep up with demand.
properly allocate resources.
Which of the following are examples of limited resources on the part of consumers? product and space money and product time and money space and time
time and money
One method for studying opportunity cost is to think in terms of risk and ability. pros and cons. tradeoffs. trial and error.
tradeoffs
